There is likely to be a reduction in petrol pump prices as the landing cost of Premium Motor Spirit (PMS), also known as petrol, has decreased.

According to the Major Energy Marketers Association of Nigeria (MEMAN), the landing cost dropped to N970 in December 2024, down from N971 per litre in November 2024.

This development comes as the price of crude oil declined to  $74 per barrel last week. MEMAN attributes the latest landing cost to a foreign exchange rate of N1,533.57/$ and $73.91 per barrel of crude oil (Brent).

International petroleum product pricing is experiencing significant volatility due to geopolitical and economic factors. These factors include events in the Middle East, China market dynamics, and the outcome of the recent USA elections.

In Lagos, the retail price of petrol remains unchanged at N1,025 per litre. However, MEMAN Chairman, Lagos chapter, Ehimen Joseph suggests that a drop in price is possible due to market forces under a deregulated market regime.

“The price of petrol is determined by market forces under a deregulated market regime,” Joseph stated. “A drop in price is possible.”